Nursery World - Market View : Mergers and acquisitions face scrutiny

Arun Kanwar, managing partner at Cairneagle, on why buyers are being selective.

We have talked in the past about the current inertia in Westminster to ‘do something’ meaningful to help with the challenges in the childcare sector, and that the Government might only do that once things reach a critical level. We seem to be getting to that point – it was reported in early February that a number of influential Tory backbenchers have created an informal pressure group to push the Chancellor to cut the costs of childcare in the March Budget. We will have to wait and see what happens, but options might include increasing funding rates, making it easier for parents to apply for Tax-Free Childcare, and business rates exemption. Changes to childcare ratios seem to be off the table of options for now.

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